- EBRD provides US$100 million towards completion of Oyu Tolgoi mine
- Bank’s loan is part of US$350 million financing packages co-arranged with IFC
- Greater sustainability of mining operations in Mongolia
The European Bank for Reconstruction and Development (EBRD) is contributing to greater sustainability of Mongolia’s mining sector and promoting advanced mining technologies by providing a working capital loan of up to US$100 million (€91.3 million) to Oyu Tolgoi (OT), a joint venture between Rio Tinto and the government of Mongolia.
The EBRD’s loan is part of a US$350 million financing package arranged by the Bank and the International Finance Corporation(IFC) with participation of leading international lenders (ANZ Bank and HSBC) as well as local banks (Khan Bank and XacBank).
The funds will allow OT to stay on track with the production ramp up and to complete the development of its underground mine (the fourth largest copper mine in the world and the key element of its operations) by the end of 2025.
The Bank’s client since 2015, Oyu Tolgoi is contributing to almost 30 per cent of Mongolia’s GDP and plays a key role in consolidating advanced technologies, sustainable management practices and an inclusive approach to the development of local talent.
The financing will also help OT to implement its ongoing green investment programme aimed at achieving environmental sustainability and reducing its carbon footprint.
The OT mine in Mongolia is the largest ever mining operation supported by the EBRD and complies with the Bank’s strict environmental policies and rules. As part of this long-term engagement, the EBRD and OT jointly developed an environmental and social action plan, which envisages regular communication with all stakeholders such as local herder communities.
To date, the EBRD has invested €2.4 billion in Mongolia’s economy through 147 projects. Almost 90 per cent of these funds have been channelled to supporting private-sector companies.